The International Monetary Fund (IMF) just raised its regional GDP growth forecasts. For the world it predicts a 4.4% global GDP decline this year followed by a 5.2% expansion next year. This economic turnaround hinges on being guided by good science, political leadership and popular acceptance.

I recently spoke with Chan Pin CHONG, Executive Vice President and General Manager of Products and Solutions at Kulicke Soffa, about how smart manufacturing is driving new production efficiencies in the semiconductor industry. During our conversation, he also provided practical steps for factory operators to follow in evaluating their smart manufacturing needs in order to ensure successful implementation and discussed the potential payoffs. Based in Singapore, Kulicke Soffa is a leading global provider of ball bonding, advanced packaging, wedge bonding, and electronic assembly equipment for the semiconductor, power and automotive industries.Ng: Industry 4.0 and smart manufacturing are critical to the growth of the semiconductor industry. What does the smart manufacturing movement mean to you or Kulicke Soffa?Chong: The future of smart manufacturing is the vision of building a digital connected factory to drive new manufacturing efficiencies by combining physical and cyber technologies. Industry 4.0 integrates discrete systems and harnesses the power of large volumes of data to move towards greater automation.At K S, we define smart manufacturing across the following four key areas embedded in our roadmap for all K S products, from wire bonders and advance placement tools to pick and place machines: Interoperability – This is about machines, devices and sensors connecting to each other. In fact, the very basis of smart manufacturing is that all devices are connected. Information transparency – Through simulation, various artificial intelligence (AI) tools use contextual information to emulate the actual world. Technical assistance – Robots or machines support humans in making decisions or solving problems. Autonomous decision-making – This is our vision that robots or machines can learn from machines to make decisions on their own. Ng: Please elaborate on some of these areas and how they’re the relevant to smart manufacturing. Chong: The need for machines, devices and people to communicate with each other forms the basis of connectivity, the idea of all machines communicating with each other or a host. Connectivity protocols now in place for machine-to-machine connectivity include SEMA, SECS/GEM, SEMI-ELS and IPC-CFX. Machine technology uses various sensing technologies. For example, for a pick and place machine such as SMT platform on K S Hybrid, the algorithm to recognize and align processes is part of the sensor needed in each machine before to can process and add thousands of components to the substrate or panel. In a wire bonder, the ultrasonics or EFO signal can provide some form of sensing technology for a machine to detect process conditions. Importantly, these sensing technologies can be used to collect feedback for process improvements.One example of how K S machines are connected to the host is our use of an intermediate server or host named KNeXt to connects to all assembly equipment in the fab. The equipment can then, in turn, connect to an external secured cloud or K S Global Cloud.Ng: What are the objectives for smart manufacturing?Chong: The ultimate goal is to achieve higher factory productivity or better OEE (Overall Equipment Effectiveness) by improving machine yields, productivity and efficiency. The key is to leverage AI, 5G, the Internet of Things (Iot) and other industry 4.0 technologies to drive automation and process improvements. Ultimately, each factory must meet productivity, yield and cost goals. Smart manufacturing enables factory operators to meet these goals. That is the focus of smart manufacturing.Ng: What is the biggest potential benefit of smart manufacturing?Chong: Smart manufacturing uses data to predict outcomes of a process step or machine operation. Once data is available in the global cloud, analytics can start to build data sets to run statistical modelling and examine factory operation trends. We can also use the data to identify past machine behaviors in order anticipate outcomes, including undesirable ones that we can then prevent.In the SMT example, if we can systematically examine days or weeks of historical performance, we can plot some statistical variations in the process specifically to a pick or placer or a robot and anticipate or avoid problems. However, all sensors must be in place in the bond head or the robot so that we can detect changes or variations in the robot’s movements.Kulicke Soffa smart manufacturing facility Ng: What are some recent factory improvements smart manufacturing has enabled? Chong: Kulicke Soffa has contributed to the hierarchical architecture of the smart factory and key technologies. COVID-19 is driving demand for greater factory connectivity, and K S offers solutions that are key to remote management and full control of smart equipment from a central control and embedding Internet of Things (IoT), big data, cloud computing and sensors in manufacturing. Using these technologies, a small smart factory can be remotely operated and managed.With COVID-19 limiting air travel around the world and access to support engineers, the need has grown for remote machine access to reduce the downtime per machine. Remote factory access enables off-site engineers to remotely identify and diagnose machine problems.Ng: What are barriers to faster adoption of smart factories?Chong: While most smart factories are capable of network connectivity and data collection, a key challenge is the lack of a business model for smart factories and smart equipment. Most factories must justify major capital investments by demonstrating ROI (Return of investments) potential. Capital improvements for every factory usually take several years to implement and are based on a complex business model. Factory connectivity requires substantial investments and years to implement. The same is true of the cloud infrastructure buildouts necessary to generate big data and meaningful analytics. The executive mandate for factory management to install capability usually calls for specific business targets in the planning stage.Another longstanding barrier to entry is the lack of compatibility of existing tools with new factory protocols, raising the question of whether the cost of replacing legacy tools justifies the need for a smart factory. If new factory investment is required for the latest tools to support the production of new products, the ROI will be much easier to justify.Ng: How is AI is important in smart manufacturing?Chong: AI interprets and learn from data to perform tasks and meet specific goals. Good examples of AI implementations include Amazon’s Siri and Alexa voice-command devices and self-driving cars being developed by Google and Tesla.At K S, over the years we’ve implemented AI in our smart wire bonders to reduce human intervention in our ProCu-7, PSP-2, ProCu Loop 2, Pro Bump and overhang processes.Thanks to AI, with senses of signals from the bonder, we can reduce the amount of parameters that an engineer or technician have to do trial and error. With on bonder metrology, PBI, loop height, wire sway features, AI allows us to measure process efficiency and provide feedback.Over several years of AI development, we have leveraged the technology to monitor machines and provide real-time performance feedback in order to provide better closed loop control such as short tail recovery in our bonder process. We can also use the data to predict machine behavior, monitor its health and track maintenance. Ultimately, AI enables fabs to improve manufacturing efficiency, productivity, yields and device quality.Ng: What’s an example of how AI has solved your manufacturing equipment problems?Chong: We’ve used AI to set RPM (real time monitor) limits, identify defective P-parts and monitor various conditions such as wire size and capillaries. These types of cases can arise in any manufacturing environment as humans make process mistakes or use the wrong part for a machine. With AI, we can prevent these problems and reduce the risk of further material lost from the wire bonding process.Ng: What advice do you have for factories looking to implement smart manufacturing systems?Chong: To build a smart factory, start by focusing on a clear set of business objectives and how smart manufacturing will help minimize or eliminate current factory inefficiencies. In other words, start with the end in mind – the problems that needs to be solved and the business goals – and identify the information you need to demonstrate ROI. Do you need to resolve, automate or improve processes or just to be more efficient? Before investing millions or billions of dollars to build a smart factory, identify those clear goals upfront. Then map out the particulars of implementation to avoid major problems around standards, protocols and connectivity.Bee Bee Ng is president of SEMI Southeast Asia.

Europe is facing an acute shortage of skilled microelectronics workers that undermines the growth potential of not only the electronics industry but the European economy as a whole. Nearly 1.1 million job advertisements for electro-engineering workers were placed in the EU between mid-2018 and the end of 2019 (CEDEFOP, 2020). The shortfall looms large as a skilled and diverse workforce that can continuously innovate is the oxygen of microelectronics. In light of the critical importance of microelectronics to Europe’s ability to fulfill its growth potential, SEMI Europe participated in the high-level roundtable hosted by Commissioner Nicolas Schmit and Commissioner Thierry Breton on October 5. The discussion’s key takeaway: The skills challenge facing the microelectronics industry is too complex for one organization to tackle, and reskilling and upskilling its workforce should be a common priority for Europe. Only with a diverse, substantial and skilled microelectronics workforce can Europe achieve its R D, design and manufacturing ambitions while ensuring its sovereignty in the digital age. The roundtable highlighted the EU Pact for Skills as a key means to narrow the industry’s skills gap.An ever-growing part of our lives, microelectronics, with their ability to run billions of computations per second and store vast quantities of data, are the brains of modern technology. The digital sovereignty of nations around the world today relies on advanced microprocessors to collect, transfer, analyze and store immense amounts of data used in key end-user sectors such as mobility, telecommunications, energy, security and healthcare. Information and communication technologies (ICT) enabled by microelectronics are helping much of the world’s population to work and study from home and remain safe during the COVID-19 pandemic.According to the Smarter2030 Report, further deployment of ICT, including electronic components in critical sectors such as transportation, manufacturing, agriculture, construction and energy, could eliminate the equivalent of 12.1 billion tons of CO2 per year globally. These are some of the reasons why nations worldwide are making large-scale investments to advance a homegrown microelectronics R D, design and manufacturing base. It is no surprise, then, that semiconductors are now at the center of the so-called global techno-trade wars.Clearly, Europe urgently needs to mobilize and pool resources to develop effective lifelong learning programs for all workers and continue investing in microelectronics innovation. We need to instill the passion for creating technology among current and future workforce, in particular women and people with challenged backgrounds, and build a highly diverse talent pool. Working together, we can better demonstrate how computing technologies, including quantum, high-performance and edge AI, provide solutions to grand societal challenges and attract talented people to the fascinating world of electronic components and systems.Against this backdrop, the microelectronics industry finds the Pact for Skills very timely and crucial to advancing the talent pool underpinning Europe’s deep digital ecosystem. The Pact will play an instrumental role in improving the scope and the quality of training partnerships at regional, national and European levels, sharing best practices and helping the microelectronics industry and workforce adapt to the effects of COVID-19.The microelectronics industry is committed to building on the momentum created by the METIS Erasmus+ collaborative project and to mobilizing our ecosystem and education partners for a successful Pact for Skills in Microelectronics starting this year.The High-Level Roundtable: Skills for Microelectronics was hosted by Commissioner Thierry Breton and Commissioner Nicolas Schmit. Participants included Paul Boudre, CEO, SOITEC; Lars Reger, CEO Germany and CTO, NXP; Frits van Hout, Executive Vice-President and Chief Strategy Officer, ASML; Françoise Chombar, CEO, Melexis; Emmanuel Sabonnadiere, CEO, CEA-Leti; Luc Van den hove, President and CEO, imec; Sabine Nietzsche, Board member, Silicon Saxony and Vice President, GlobalFoundries; Laith Altimime, President, SEMI Europe (coordinator of METIS); Yolande Berbers, President, European Society for Engineering Education (SEFI); James Calleja, President, European Forum for Technical Vocational Education and Training (EFVET); Ludovic Voet, Confederal Secretary, European Trade Union Confederation (ETUC).Emir Demircan is director of Advocacy and Public Policy at SEMI Europe. To learn more about SEMI Europe advocacy, contact Emir at [email protected].

The historic and forecast growth trends for cleanroom robots are in line with the long-term growth rates of semiconductor manufacturing equipment.

Semiconductor equipment spending is mounting a strong recovery on the strength of explosive chip demand for work-at-home and study-at-home electronics fueled by the COVID-19 pandemic. Despite the growth, the 2017-2018 memory boon that triggered a critical subsystems shortage is still fresh on the minds of equipment suppliers as they worry whether critical subsystem providers can keep pace with the rebounding chip industry while managing the fallout from the COVID-19 pandemic.Hideyuki Koishi, president of HORIBA STEC, Co., Ltd., a leading supplier of mass flow controllers (MFCs), one subsystem critical to semiconductor production, recently spoke with SEMI about the company’s response to the COVID-19 outbreak, the pandemic’s impact on the global supply chain and the company’s ability to meet the demand for MFCs. SEMI: What COVID-19 countermeasures has HORIBA STEC taken?Koishi: To ensure employee safety and security while maintaining a stable supply of products to our customers, we started to deploy company-wide countermeasures when the Japan government declared a nationwide state of emergency to curb COVID-19 infections on April 16.HORIBA STEC and the entire HORIBA group formed a global COVID-19 task force and centralized all local outbreak decision-making to drive a rapid and effective global response. We quickly implemented work-at-home practices for our office staff and provided a safe environment for our factory workers, who are essential to maintaining product supplies, by establishing social distancing protocols and restricting site visits to essential workers. We also distributed face masks to all employees and placed disinfectant dispensers near the door of every room so employees could wash their hands before entering.To help on-site employees follow our social distancing guidelines, we reduced seating at cafeterias and converted meeting rooms to offices to give employees ample work space. We also established invisible walls in manufacturing facilities with multiple collocated divisions to restrict workers to their assigned areas, a containment measure that helps with social distancing while minimizing the risk of an entire factory shutdown if a worker contracts the virus. SEMI: Have you experienced supply chain disruptions due to COVID-19 outbreak?Koishi: Even though our supply chain extends overseas and includes China, fortunately we have not experienced any significant disruptions thanks to the broad geographic distribution of our supply chain. In addition, because many of our critical components are sourced in Japan, pandemic-related impacts to our business have been limited.Long before the COVID-19 outbreak, we organized a community called Rakuraku-kai with our suppliers in Japan to build and maintain close relationships. Although the community name suggests it is exclusive to Kyoto-based suppliers, its reach is a nationwide. After the declaration of state of emergency in June, the supplier community gathered for an ad hoc meeting to exchange information and share perspectives on the COVID-19 crisis.SEMI: Did you have any pandemic protocols in place before the COVID-19 outbreak?Koishi: In 2014, HORIBA group launched Stained Glass, a project designed to increase workforce diversity at HORIBA group companies through initiatives such as placing more women in decision-making roles and encouraging working at home to help employees better balance job demands with their family lives. As part of Good Place, the project’s program to increase the work-at-home rate, HORIBA group deployed a web-based meeting system and encouraged workers to transition from physical to online meetings. Good Place has helped our IT team and workers smoothly implement our work-at-home practices.Working at home is a beneficial practice regardless of its effectiveness in curbing infections. Employees can reduce commute time, increasing their quality. And it’s much easier and more affordable for international participants to join meetings since they’re spared the time and cost of travel. This year HORIBA group also moved its three-day bi-annual global meeting online to make them safer and more economical. The meeting is attended by about 100 leaders of group companies and business units.SEMI: Do you have any concerns about meeting demand for mass flow controllers?Koishi: We doubled the capacity of our main mass flow controller factory in Kumamoto prefecture in 2018 and with more floor space available for further expansion, we see no major barriers to meeting the growing demand from international customers in 2021 and beyond. Nonetheless, we must sustain the best possible COVID-19 countermeasures to maintain production while ensuring the safety of our employees.SEMI: Are you make any social contributions to combat the virus?Koishi: Semiconductors are not only indispensable for the electronics behind remote work, education and healthcare but they also play a critical role in developing COVID-19 therapies and vaccines. Thus, at HORIBA STEC, we believe our most important contribution is to maintain steady a supply of our mass flow controllers and other key semiconductor equipment components.HORIBA group also participates in two important pandemic initiatives. The Open COVID-19 Declaration program calls on intellectual property owners to make their patent rights, utility model rights, design rights and copyrights freely available in the fight against COVID-19. The program’s sole purpose is to stop the spread of COVID-19. HORIBA is among the 20 founders1 of this initiative.In June, HORIBA joined a push by the National Institute of Advanced Industrial Science and Technology (AIST) to develop a simple and rapid COVID-19 antibody test chip system. We’re contributing our expertise in immunoassay analysis and clinical laboratory equipment to help develop the system. SEMI: What have you learned from the COVID-19 outbreak?Koishi: The COVID-19 crisis has posed unprecedented challenges. Everyone hopes to return to normal soon but in reality things will never be exactly the same as before the crisis.Japan might have lagged other countries in its use of IT to improve business efficiency, but as we deal with the new coronavirus, both companies and their employees have been tirelessly considering reforms to the way we work through digitalization. I believe it will be difficult for companies to survive in the new normal unless they can incorporate these types of changes into their operations.On the other hand, I've also been reminded of the importance of traditional, analog communication. While we conducted all of our hiring interviews online this year, face-to-face meetings are a much richer experience that gives the prospective employee and the hiring company a much better sense of each other. In addition, as a company we need to continue to improve our ability to supply products so we can overcome challenges like the pandemic. COVID-19 has taught us our change needs to be more robust. We also need to evolve our business continuity plan to extend well beyond countermeasures to natural disasters such as typhoons and earthquakes. What matters most is that we apply the lessons of COVID-19 to make our business more resilient.[1] Ajinomoto Co., Inc., Canon Inc., Chanel G.K., GenoConcierge Kyoto, Inc., Honda Motor Co., Ltd., Horiba, Ltd., Konica Minolta Inc., Kyoto University, LSI Medience Corporation, Mitsui Knoledge Industry Co., Ltd., NEC Solution Innovators, Ltd., Nikon Corporation, Nissan Motor Co., Ltd., Rohm Co., Ltd., SRL, Inc., Shimadzu Corporation, Teijin Limited., Toyota Motor Corporation, Tsubakimoto Chain Co., and Yahoo Japan Corporation.Yoichiro Ando is a marketing staff member at SEMI Japan.

A 500,000 ft2 (~47,000 m2) state-of-the-art cleanroom facility still towers as the largest U.S. high-technology investment in Vietnam 10 years after starting operations in Saigon High Tech Park in District 9, Ho Chi Minh City. The structure built by Intel Products Vietnam (IPV) on the back of a $1 billion investment is the largest assembly and test manufacturing facility (ATM) in the Intel assembly and test network. IPV turns out products that are helping power cutting-edge applications along with the next wave of semiconductor industry growth as it homes in on 5G, Internet of Things (IoT), desktop and mobile. And it has been a boon to the local economy, generating more than 5,000 high-skill jobs across a number of assembly and test disciplines since launching operations in 2010. It has also contributed to over US$37 billion in exports from 2010 to 2019, accounting for over 60% of Saigon High-Tech Park’s annual export values in 2019. With its vision “to create the future of Intel and Vietnam,” Intel continues to be a strong long-term partner in Vietnam. I recently spoke with Kim Huat (KH) Ooi, vice president of Manufacturing and Operations and General Manager at Intel Products Vietnam (IPV), about the facility’s vital role in Intel’s overall manufacturing operations, its support for the E E ecosystem in Ho Chi Minh City, and measures it has implemented to reduce the impact of the COVID-19 pandemic on the facility and protect employees. Ooi leads and manages the site to support Intel’s business in Vietnam. His responsibilities include overseeing factory operations and employee relations; enriching the Intel image and brand; building strategic relationships with communities, media, governments, and local authorities; and working with the industry ecosystem and government. IPV employees celebrate Intel’s 50th anniversary in 2018. Ng: How does IPV campus complement the rest of Intel manufacturing sites and be nearer your customers and supplier base?Ooi: Intel Vietnam is an important part of Intel’s manufacturing presence worldwide. IPV has been operating for nearly 14 years in Vietnam and has celebrated multiple milestones along the way. As a site, we have matured and grown over the years. In March this year, we celebrated a proud milestone – the rollout our 2 billionth unit – that reflects the value of IPV to Intel Corporation as these Made in Vietnam products support its customers worldwide. One of our philosophies is to work with and grow local ecosystems in countries where we operate. In Vietnam, Intel has been offering technical and managerial expertise to many local suppliers in Vietnam to help them expand their business and services to other foreign direct investment (FDI) customers in the industry. Over the past 10 years, Intel’s supplier list has grown 10-fold from 20 in 2010 to about 180 suppliers in 2020.In today’s world of fast-changing consumer preferences and expectations, we need to help drive development of the latest products and technologies to support strong customer demand and new product portfolios such as 5G. To support evolving customer requirements, our workforce frequently upgrades its skills to work on new products and technologies.Intel as a company is also evolving as it transforms from a PC-centric to a data-centric organization, a shift behind the more than US$70 billion in record revenue Intel posted in 2019. Intel’s data-centric business accounted for more than half of that revenue. IPV plays a key role in Intel’s expansion into new market segments.Ng: What are the key differentiating elements (talent, tax, technology, trade, EHS) in Vietnam that have been instrumental in supporting the E E ecosystem in Ho Chi Minh City?Ooi: Vietnam’s stable political environment and increasingly liberalized trade and investment policies are great for businesses. The region’s young, talented workforce is also one of many competitive advantages that enables it to attract foreign investment. Intel’s announcement to invest in Vietnam in 2006 has played a large part in helping put Vietnam on the map of the global IT and semiconductor industry. The news helped attract industry suppliers and service providers, bolstering Vietnam’s economy and creating jobs. The Vietnam government also figured prominently in sparking the boon by establishing the right policies and incentives to attract foreign investment. Since starting operations, we have seen significant improvements in infrastructure such as roads, ports, airports, broadband and power supply. Vietnam’s standing in the global business community is even stronger today after the government successfully combatted the COVID-19 pandemic early on and introduced policies to help businesses restart operations. We expect all these factors to continue to make Vietnam an attractive relocation target for companies around the world. Ho Chi Minh City People’s Committee Vice Chairman Mr. Duong Anh Duc (center) visited Intel Vietnam to tour the state-of-the-art facility. Ng: What measures have you implemented to reduce the impact of the COVID-19 pandemic and protect employees? Ooi: COVID-19 has taken the world by storm and changed the way we work and live in many ways. It has unquestionably pushed the world to build stronger partnerships among individuals, organizations, businesses and communities. Intel’s manufacturing operations have continued to run at full capacity. Since the outbreak emerged, we have strictly followed required Intel safety measures as well as the Vietnam’s health guidelines. We have also implemented a number of other safety initiatives and protocols to ensure our business runs smoothly. We’re doing everything possible to ensure the well-being of our employees and help them better respond to the pandemic.In coordination with our strategic partners, we have been donating thousands of Personal Protective Equipment (PPE) to the Fatherland Front and Department of Health (DoH) since early March. Recently, in partnership with AmCham Vietnam, Intel donated an imported ambulance with built-in essential equipment to the Ho Chi Minh City 115 Emergency Center. Intel has also teamed with Saigon Hi-Tech Park management to donate two ventilators and N95 masks to DoH.Our employees are also helping out by donating to Vietnam’s Coronavirus Donation Matching campaign. We collected US$13,000 from Intel employees and included matching funds from Intel Foundation to support three non-profit organizations (NPOs) – Saigon Children’s Charity, Kidspire Vietnam and Teach for Vietnam. All told, Intel Products Vietnam has donated US$200,000 to COVID-19 relief efforts, demonstrating our long-term commitment to communities where we operate. Intel Products Vietnam teamed with AmCham Vietnam to donate a fully equipped ambulance to Ho Chi Minh City’s 115 Emergency Center, demonstrating IPV’s long-term corporate social responsibility commitment. In early May, Intel unveiled our 2030 Corporate Strategy and goals to accelerate progress against the world’s critical challenges and help drive positive global outcomes. Part of our 2030 goals, our RISE (Responsible, Inclusive, Sustainable, Enabling) strategy focuses on the company’s commitment to its corporate social responsibility (CSR) initiatives to create a more responsible, inclusive, safe and sustainable world through technology and collective action. IPV has also committed to implementing the RISE strategy in Vietnam with local community initiatives and technology interventions. Bee Bee Ng is president of SEMI Southeast Asia.

Connectivity. Electrification. Shared Mobility. Autonomous Driving. McKinsey Company cites these four disruptive trends behind future mobility — dynamics that could help to transform quality of life for hundreds of millions of people.McKinsey Company predicts that by 2030, mobility innovation could dynamically alter everything from safety in human locomotion to air quality, public spaces and power systems. Much the same way that tiny plankton in our oceans sustain aquatic animals, MEMS and sensors, while small, are crucial building blocks of integrated mobility.As partner at McKinsey Company, Andreas Breiter will explore this connection during his MSEC 2020 presentation, Future Mobility Enabled by Sensorization. SEMI recently caught up with Breiter to preview his October 7 talk at SEMI’s first virtual MEMS Sensors Executive Congress, October 6-8 and 13-15, 2020.Register now for MSEC 2020 and explore this topic with Breiter during the live Q A portion of his presentation.SEMI: You play a dual role at McKinsey Company, advising clients in advanced industries on capital investments and serving on the leadership team of the McKinsey Center for Future Mobility (MCFM). What is the relationship between them?Breiter: Mobility has become so much more than the auto sector. Today when we say future mobility, we’re talking about the convergence of many exciting developments influencing the ways that people and goods move around. Cars have become computers, and we now have to contemplate new frontiers, such as air taxis and electric vehicle infrastructure.Mobility is changing so quickly that it’s inspiring decision-makers from other market sectors to explore what implications it will have for them. We’re helping mining companies think about their haulers, retailers think about their footprints, and insurance companies plan for autonomous vehicles. The MCFM exists as a global think tank to focus on these frontier topics, helping to ensure we are ready for the future. During my MSEC presentation, I’ll explore how those future topics are influencing automotive mobility in the short- and long-term. The MCFM is even more forward-looking, so we’re just starting to build scenarios for what might come in 2040 and beyond.SEMI: How are changes in the mobility ecosystem affecting the automotive value chain?Breiter: In the past, the automotive value chain was clearly structured. We had sensor companies selling to Tier 1 suppliers, who would in turn sell to OEMs, who would sell directly to end customers.The value chain has grown more complex, however. In the future, we might see fleets of robotaxis, which will be owned by companies instead of by individual consumers. Already today, rideshare companies are game-changers because consumers can travel by car without owning one.Plus we see companies offer parts of the user experience such as user interfaces for automotive infotainment. In the past, everything in the car was branded by the OEM, but now we have third-party platforms that let us control some of our automotive infotainment options.SEMI: How are MEMS and sensors suppliers participating in this new value chain?Breiter: The pervasive use of sensors in cars has driven automotive OEMs and Tier 1 suppliers to work directly with suppliers, whose close involvement eases the complexity of integration. Just think about the sensors used in autonomous driving. Getting that right is safety-critical.We’re also seeing suppliers go beyond the individual component level to provide complete systems-level solutions. Advanced driver-assistance systems (ADAS) are a good example.SEMI: Automotive applications tends to have some of the longest design-to-delivery cycles in industry. Will this ever change?Breiter: The automotive product lifecycle was typically five-plus years, with a few years of development before that and continued service after the end of the lifecycle. That gives MEMS and sensors suppliers a 10+ year timeline on one model.With so much innovation taking place, this slow cycle won’t work forever. Over-the-air (OTA) updates, for example, enable new features when they become ready for deployment. I expect we’ll see OTA updates from many end manufacturers in coming years. SEMI: What changes do you foresee in ADAS and autonomous driving?Breiter: ADAS and autonomous features will become much more common. We’ve already witnessed this progression, with introductions first in premier models and later rolling out in more affordable vehicles. Lane-change assist and rear camera followed this path and are now pretty standard. Collision avoidance, as a safety-critical feature, is likely next in line for more widespread adoption.As for fully autonomous driving, consumers will accept that only when it becomes safer than a human driving a car.SEMI: Where is the greatest opportunity in the next five years?Breiter: Electrification of vehicles is number one. When it comes to engines, we’re moving from internal combustion to hybrid and then to electric. Since OEMs are adding sensors for the battery system, for battery management, and for electric motors, this progression represents growth opportunity for sensors suppliers – in particular for hybrid vehicles that contain both powertrain technologies.But that’s not all when it comes to sensors. Outside of powertrains, new sensors are added to enable a variety of functions, including, for example, ADAS and autonomy, as well as increased interior content, such as mood lighting.SEMI: Is there anything surprising coming, sensor-wise, in mobility?Breiter: To enable intelligent traffic systems, you need to make infrastructure smarter — which brings us to sensors. We’re going to see roads and other assets in infrastructure sense the state of traffic, sense what traffic participants are doing, and support connectivity between, for example, the infrastructure, vehicles on the ground, pedestrians on walkways and drones in the air.SEMI: What would you like MSEC attendees to take away from your presentation?Breiter: We’re living in a transformative era for the mobility industry. During the last 100 years of mobility, the ecosystem barely changed. In recent years, however, we’ve seen massive technological gains, largely enabled by semiconductors, MEMS and sensors. Instead of serving as just one of many suppliers, I’d encourage MSEC attendees to anticipate future mobility challenges so they can offer solutions to OEMs and Tier 1 suppliers accordingly.For more information, visit McKinsey Center for Future Mobility. MEMS Sensors Industry Group® (MSIG), a SEMI technology community that connects the MEMS and sensors supply network in established and emerging markets, enables members to grow and prosper. Visit us today.Andreas Breiter leads McKinsey’s capital-investment work for advanced industries in North America as well as its Center for Future Mobility on the West Coast. In his advisory work, Breiter serves a broad range of companies in the automotive sector, including car and truck manufacturers and their suppliers, as well as companies in the utilities and renewables space. He helps executives make strategic choices around product development and helps companies stay ahead of emerging trends, such as autonomous driving, connectivity, electric vehicles, and shared mobility.Andreas holds a Ph.D. in Operations Management and studied in Germany, France, the U.S. and Canada.Nishita Rao is product marketing manager at SEMI.

At the 1964 New York World’s Fair, Walt Disney and his team of Imagineers debuted Audio-Animatronics® in four attractions, Great Moments with Mr. Lincoln, General Electric Carousel of Progress, Ford Magic Skyway, and it’s a small world. As “a new type of animation” that Walt said was “so lifelike that you might find it hard to believe,” Audio-Animatronics captivated audiences, setting the stage for the technological innovation that would transform theme-park attractions for decades to come. While the Audio-Animatronics in classic Disney® attractions such as Enchanted Tiki Room and Pirates of the Caribbean® continue to delight park-goers, more modern attractions take full advantage of the miniaturized, sensitive enabling hardware components, software algorithms, and connectivity technologies that are available to today’s engineers.When Michael Tschanz, director of engineering technology and analysis, a segment within Disney Parks, Experiences and Products’ Global Engineering and Technology department, gives the opening keynote at MSEC 2020, SEMI’s first virtual MEMS Sensors Executive Congress (October 6-8 and 13-15, 2020), attendees will get a rare look inside the magic of select Walt Disney World attractions. Join MEMS Sensors Industry Group and SEMI on October 6 for Tschanz’s keynote presentation, Model-Based Design and Scientific Data Analytics of Disney Attractions — and experience video footage that you won’t see anywhere else. Register now for MSEC 2020.MEMS Sensors Industry Group® (MSIG), a SEMI technology community that connects the MEMS and sensors supply network in established and emerging markets, enables members to grow and prosper. Visit us today.In his role at Disney, Michael Tschanz leads a multidiscipline team which develops detailed mathematical and physics models for transportation, ride and animatronic systems, custom software and network applications, and robotics. The responsibilities for this team also include the development of optimization algorithms, servo controllers, interactive/immersive experiences, data analytics, and material process solutions. Michael’s rich and diverse background includes designs of numerous attractions at various Disney theme parks including: Test Track® Attraction; Mission: SPACE® Attraction; Toy Story Mania!® Attraction and the Expedition Everest® Attraction. Michael also designed all the velocity profiles at the worldwide locations of The Twilight Zone Tower of Terror™.Nishita Rao is product marketing manager at SEMI.

MEMS sensors have come a long way over the past few decades. The late 1990’s brought us the mass production of both MEMS accelerometers for automotive air bag crash sensors and MEMS gyros for rollover detection and anti-locking braking systems (ABS). In the early 2000’s, MEMS sensors made the jump from automotive to mobile and consumer electronics, first with a MEMS microphone in the wildly successful Motorola RAZR phone and then with a MEMS accelerometer in the first Nintendo Wii remote.Following this initial period of MEMS’ commercialization, the timetable for the mass proliferation of both MEMS and non-MEMS sensors accelerated dramatically. Just take Apple iPhone. Released in 2007, the first iPhone had one MEMS accelerometer and one proximity sensor. Released 10 years later, iPhone X included four MEMS microphones, a barometer, three-axis gyro, MEMS accelerometer and proximity sensor, an ambient light sensor and an infrared (IR) sensor, a magnetometer, and multiple image sensors. For perspective’s sake, well over two billion iPhones have been sold since 2007, making iPhone a major growth-driver in MEMS. According to Yole Développement[i] (Yole), MEMS will generate $10.9 billion in revenue in 2020 alone (non-MEMS sensor revenue will be even higher), spanning automotive, consumer and mobile, Internet of Things (IoT), medical and healthcare, aerospace, industrial and other markets.With so much growth behind us, what’s ahead? Jens Fabrowsky, executive vice president of Automotive Electronics at Robert Bosch GmbH, will share his insights on the future of MEMS during his MSEC 2020 keynote, The Next 10 Years of MEMS: An Outlook on Opportunities and Challenges. I recently spoke with Fabrowsky to preview his October 15 presentation at SEMI’s first virtual MEMS Sensors Executive Congress, October 6-8 and 13-15, 2020. Register now for MSEC 2020 and explore this topic with Fabrowsky by participating in the Q A segment of his presentation.SEMI: What are some of the primary challenges facing the MEMS industry?Fabrowsky: Development costs for new generations of MEMS sensors are increasing, leading to several major shifts. To compensate for rising development costs and reduce risk, MEMS sensors suppliers are pursuing wider, diverse markets instead of just targeting high-volume applications. At the same time, end-device manufacturers are demanding greater product differentiation, but they don’t want to pay a premium for it or wait for new hardware iterations. To stay competitive, sensor suppliers are providing software solutions that support new features and functionality. That approach is more cost-effective and speeds design-to-production cycles. SEMI: What factors are increasing development costs for new MEMS sensors, and what can companies do to mitigate their R D risk? Fabrowsky: As with most electronic components, MEMS’ costs are driven by development and capital expenditures. The increasing complexity of the content, especially in interface ASICs and software, makes MEMS development a multidisciplinary feat, requiring several competencies across multiple design centers to meet ever-demanding timelines.Manufacturing also plays a role. We often see dedicated manufacturing lines built for new MEMS products, which stresses both investments and capacity planning. Working together as an industry, we can reduce risk and costs by applying the same manufacturing process to more than one generation of product, which will speed time to market, increase volumes and improve ROI. SEMI: To what degree will the COVID-19 pandemic continue to affect sensors suppliers?Fabrowsky: MEMS manufacturing flows have been affected by disruptions in the supply chain. While the benefits of multiple sourcing and more direct ownership of the flow itself (on-shoring, vertical integration) have helped us, no one in the industry can claim they are out of danger, especially if a new wave of contagion occurs. Our industry relies heavily on just-in-time manufacturing and logistics, and we are all watching for influences that could alter flow. The pandemic has reminded us all that an important competitive advantage is a predictable, secure supply — which also comes at a cost that the end customer must value. SEMI: Why and how are traditional hardware companies like Robert Bosch differentiating their platforms for end-device manufacturers? Fabrowsky: On-shoring was already a trend before the pandemic. We’ve always believed in and are still investing in our own manufacturing facilities. That includes the 12-inch ASIC fab in Dresden, Germany, where we expect to manufacture future generations of power and control electronics to satisfy the growing appetite for silicon that vehicle electrification demands.We think that one of our biggest differentiators is that our portfolio includes more than just components: Close collaboration with our internal partner divisions gives us comprehensive system know-how across the automotive supply chain. On the consumer-electronics side, we have extensive partnerships with makers of application processors, wireless systems, and sensor processing software. With this expertise behind us, we can provide flexible system-integration options to our end customers — who also benefit from a mature supply chain that supports high volumes and field-tested quality.SEMI: What does customer demand for software solutions mean for sensor suppliers and how will suppliers evolve to meet this need? Fabrowsky: In some silicon product business units, the R D effort to develop software is higher than the effort to design the hardware! Software is not only what’s needed on the application layer. It also runs the interface to the processors – the drivers. In addition, increasingly complex testing software ensures high yield and minimizes defects. On the application layer, we are increasingly using and promoting open-source platforms to encourage better collaboration throughout the ecosystem. In contrast, companies that charge fees to access their own proprietary software environments are missing the opportunity to remain competitive in the long run. SEMI: Why are end-device manufacturers looking for plug-and-play solutions instead of standalone devices? Fabrowsky: Consumers of electronic devices always want products with more features and lower prices. Their requirements produce a trickle-down effect that reaches all the way to component suppliers such as ourselves. This requires us to manage a healthy innovation pipeline, and to choose products and technologies that promise growth and high volumes. This isn’t always simple, however, and many times the component itself is not enough. Think of our Light Drive projector for Bosch Smartglasses. The only way we can hope to win designs in this market is by realizing a fully integrated module, with our own scanning mirrors and driver chips, as well as our integration of laser modules and the display system. This lets us offer an individually tested and calibrated end product ready for assembly.SEMI: What would you like MSEC 2020 attendees to take away from your presentation?Fabrowsky: We’ll be looking at what’s driving the next decade of MEMS applications. For example, the embedded computing inside the sensors, together with enhancements in integration, materials and packaging, will increase the pervasiveness of MEMS sensors and actuators as touchpoints between electronics and the physical world. This will create a new form of intimacy between us and the machines, which we call Artificial Empathy.To learn more about Bosch Smartglasses Light Drive and other MEMS advancements, register now for MSEC 2020.Robert Bosch GmbH is a longtime member of MEMS Sensors Industry Group® (MSIG), a SEMI technology community that connects the MEMS and sensors supply network in established and emerging markets, enabling members to grow and prosper. Visit us today.Jens Fabrowsky began his more than 20-year career at Bosch Group as department head responsible for hydraulic units in the Blaichach plant, Germany Chassis Systems division, in 1999. He soon moved onto technical plant manager and later to plant manager within the company’s Germany Gasoline systems division. He has held the role of executive vice president, Automotive Electronics at Robert Bosch GmbH, since April 2012. Fabrowsky studied mechanical engineering and industrial engineering at the University of Stuttgart (Germany) and the Technical University of Munich (Germany). [i] Status of the MEMS Industry report, Yole Développement, 2020.Nishita Rao is product marketing manager at SEMI.